CASH 2018 Annual Report

135 The following table provides the average recorded investment in impaired loans and leases for the years ended September 30, 2018 and 2017. Year Ended September 30, 2018 2017 Average Recorded Investment Average Recorded Investment (Dollars in Thousands) National Lending Commercial finance $ 1,134 $ — Total National Lending 1,134 — Community Banking Commercial and multi-family real estate 673 883 1-4 family real estate 159 176 Agricultural 1,652 414 Commercial operating — 202 Consumer 67 — Total Community Banking 2,551 1,675 Total loans and leases 3,685 1,675 For economic or legal reasons relating to a borrower’s financial difficulties, the Company may grant to a borrower a concession for other than an insignificant period of time that the Company would not otherwise grant. The Company classifies these related loans and leases as troubled debt restructurings (“TDR”) which may involve forgiving a portion of interest or principal on existing loans or leases, making loans or leases at a rate materially less than current market rates, or extending the term of the loan or lease. For the year ended September 30, 2018, the Company had 10 Community Banking loans with a balance of $2.0 million, and 11 National Lending loans and leases, with a balance of $2.5 million classified as TDRs. For the year ended September 30, 2017, the Company had four Community Banking loans, with a balance of $0.5 million classified as TDRs. All of the TDRs that were modified during the year ended September 30, 2018 were modified to extend the term of the loan. During the year ended September 30, 2018, the Company had one Community Banking loan with a balance of $0.1 million that was modified in a TDR within the previous 12 months and for which there was a payment default. For the year ended September 30, 2017, there were no TDR loans for which there was a payment default. The Company had no commitments to lend additional funds on loans or leases with terms modified in a TDR at September 30, 2018 and 2017. NOTE 4. LOAN SERVICING Loans serviced for others are not reported as assets. The unpaid principal balances of these loans at fiscal year-end were as follows: September 30, 2018 2017 2016 (Dollars in Thousands) Mortgage loan portfolios serviced for Fannie Mae $ 2,338 $ 3,162 $ 3,980 SBA/USDA 98,942 — — Other 32,726 18,649 15,452 $ 134,006 $ 21,811 $ 19,432